G7: Bitcoin failed as a means of payment and savings

Bitcoin and other cryptocurrencies have not become «reliable and attractive» means of payment and savings, butstablecoins have potential. This is stated in the report of the “Big Seven” (G7).

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The group which includes the USA, Japan, Germany,France, Great Britain, Italy and Canada, published a report on stable coins. The authors of the document recognized that global stablecoins, although not risk free, can solve the problem of slow and expensive money transfers.

At the same time, cryptocurrencies cannot servean effective solution, since they are “extremely unstable”, difficult to use, have scalability limitations and problems with management and regulation.

«Cryptocurrencies therefore serve as a highly speculative asset class for certain investors and those involved in illegal activities, rather than as a means of payment».- the report says.

On the other hand, stablecoins also do not yet haveglobal regulation and may be unstable. But, subject to the rules, «stable coins» can be convenient for use as a means of payment and savings, G7 experts say.

«No global stablecoin projectmust begin work until legal, regulatory and supervisory issues are properly resolved, risks are reduced through the implementation of appropriate designs and compliance with clear proportionate regulations»,— the authors of the document emphasized.

Recall that the G7 already warned of a tough regulatory approach
«stable coin» project Libra from Facebook. Previously, the group published a report on the risks to the stability of the global financial system posed by the widespread use of stablecoins.